Defaulted loans

Published:  02:34 AM, 11 February 2019

Rescheduled more, recovered less


Four state-owned banks have rescheduled huge sums of loans during last year's first nine months but these banks have failed to recover significant amounts of defaulted loans from the top borrowers.

Sonali Bank, Janata Bank, Agrani Bank and Rupali Bank have rescheduled loans of 2, 722 crore taka from January to September 2018. During the same period these four banks have recovered only 1, 308 crore taka.

Agrani Bank's Managing Director Shams Ul Islam has told media loan defaulters most of the times get stay orders from court which is why defaulted loans cannot be recovered from them.

Agrani Bank was affected with several thousand crores taka defaulted loans till June 2018 which could not be recovered due to cases, Shams Ul Islam added. 

Shams Ul Islam further said that loan defaulters should be boycotted socially. Rupali Bank recovered only 2 crore taka out of 152.70 crore taka defaulted loans from 20 top borrowers during the first nine months of 2018.

Sonali Bank rescheduled 1, 472 crore taka during the first nine months of 2018. Sonali Bank recovered 555 crore taka defaulted loans during the same period.Janata Bank rescheduled 834 crore taka during the first nine months of 2018. This bank recovered 297 crore taka defaulted loans during the same period.

Loans of 19, 120 crore taka were rescheduled in the banking sector during 2018. Bangladesh Bank's financial stability report shows that 84 thousand crore taka was rescheduled in the country's banking sector during last five years.

Financial analysts have said that loan scammers should not be allowed to travel abroad or should not be allowed to buy air tickets. Such instances prevail in several countries.

Economists have said that banks and regulatory authorities should lay more emphasis on recovering defaulted loans instead of rescheduling loans over and over again. Some loans were rescheduled ten times reportedly. This is an alarming sign for the banking turf, financial scholars have stated. 

Professor Dr. Abul Barakat, President of Bangladesh Economics Association said to The Asian Age, "All banks should exercise stronger monitoring over the loan disbursement process. Bad loans should not be rescheduled. Rather tougher steps should be taken to recover defaulted loans."

Professor Anu Muhammad, Jahangirnagar University told The Asian Age, "Defaulted loans cannot be recovered because of corrupted bankers and dishonest clients. There is no good governance and no accountability in the banking arena of Bangladesh."

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